Washington, D.C., June 19, 2025 – President Donald Trump says America has too many federal holidays, claiming they cost the country billions of dollars. His comments, posted on Truth Social during Juneteenth, have stirred debate. Are holidays really bad for the economy, or do they bring benefits? This article breaks it down.
What Did Trump Say?
On Juneteenth, a federal holiday marking the end of slavery in the U.S., Trump posted on Truth Social: “Too many non-working holidays in America. It is costing our Country $BILLIONS OF DOLLARS to keep all of these businesses closed.” He added, “The workers don’t want it either! Soon we’ll end up having a holiday for every once working day of the year. It must change if we are going to, MAKE AMERICA GREAT AGAIN!”
White House Press Secretary Karoline Leavitt confirmed it was a federal holiday during a briefing but didn’t say if Trump was observing it. So, is there truth to his claims? Let’s look at the evidence.
How Do Federal Holidays Affect the Economy?
Federal holidays mean many businesses close, and some workers get a day off. There are currently 11 federal holidays in the U.S., including Independence Day, Thanksgiving, and Juneteenth. But do these days off really hurt the economy?
The Case for Economic Losses
Some studies suggest holidays can reduce worker productivity. Productivity measures how much work people do in a set time. On holidays, productivity drops to zero for those who don’t work. A 2022 study by economists found that when a holiday falls on a weekend and isn’t moved to a weekday, the U.S. economy grows slightly—by 0.08% to 0.2%—compared to when it’s rescheduled. This means weekday holidays might slow down economic output.
The manufacturing sector, which relies on steady production, can take a big hit. For example, factories may stop or slow down, leading to delays. The days before and after holidays can also be less productive. Workers often take extra days off, leaving others with heavier workloads, which can lower efficiency.
The Benefits of Holidays
However, holidays aren’t all bad for the economy. Taking time off can make workers happier and healthier, which boosts productivity in the long run. A Microsoft study from 2025 found that workers feel overwhelmed by long hours and endless meetings. One-third of 31,000 surveyed employees said keeping up with work has been “impossible” over the past five years. Time off, like during federal holidays, can help workers recharge.
Another study by Ernst & Young showed that for every 10 extra hours of vacation, employee performance reviews improved by 8%. Workers who take breaks are also less likely to quit their jobs, saving companies money on hiring and training.
Do Businesses Really Shut Down?
Trump said holidays cause businesses to close, costing billions. But not all businesses stop. Many workers, like emergency responders, retail staff, and transportation workers, keep working on holidays. In fact, some industries thrive during these times.
Holiday Spending Boosts the Economy
Holidays often mean more shopping. Consumers spend more on sales tied to holidays like Memorial Day or Independence Day. The tourism, hospitality, and retail sectors see big gains. For example, restaurants, hotels, and stores benefit from travelers and shoppers.
Small businesses also profit. A 2018 study from the UK showed that small shops earned an extra £253 (about $340) in profit on bank holidays. In the U.S., similar trends are seen, with local businesses cashing in on holiday crowds.
Expert Insights
Economist Dr. Sarah Miller, who studies workplace productivity, says, “Holidays have a mixed impact. Short-term losses in output are real, especially in industries like manufacturing. But the long-term benefits—like better worker morale and lower turnover—can outweigh those costs.” She adds that consumer spending during holidays helps balance economic losses.
Are There Too Many Holidays?
The U.S. has fewer federal holidays than many countries. For comparison, Japan has 16 national holidays, and India has over 20 in some states. Trump’s claim that “we’ll end up having a holiday for every day” seems exaggerated, as adding new holidays requires Congressional approval, a slow process.
Still, some agree with Trump that fewer holidays could streamline business. “Manufacturers lose momentum when production halts,” says John Carter, a factory owner in Ohio. “But I also see my workers come back refreshed, so it’s not black-and-white.”
What’s Next?
Trump’s comments have sparked discussions about balancing economic growth with worker well-being. Reducing federal holidays could save money in some sectors but might hurt industries that rely on holiday spending. It could also upset workers who value time off.
For now, no changes to federal holidays are planned. Any move to cut them would face pushback from workers, unions, and businesses that profit from holidays. As Dr. Miller notes, “The economy is complex. Cutting holidays might save money in one area but create problems in another.”
The debate is likely to continue as Trump pushes his economic agenda. For now, Americans will keep celebrating their 11 federal holidays, from Juneteenth to Christmas, while weighing their costs and benefits.